Watching Where The Money is Going

In the world of cloud computing and virtualization, it’s interesting to me sometimes to watch where the money is going – in terms of investment dollars – to gauge what technology trends will be first and foremost.

I read with great interest a recent story about Bellevue, WA-based venture capital firm Ignition Partners. It invests in both early-stage and growth-stage companies in the U.S. and China, and it focuses on consumer tech, communications and wireless, and business software and infrastructure. Ignition is strong in cloud computing, having been involved in Citrix Systems’ acquisition of XenSource, for one. “This is the next generation of what we believe system software is doing,” said Brad Silverberg, a co-founding partner at Ignition, in the story. “It’s the next stage of the Internet. ”

As for virtualization, which enables cloud computing, Ignition partner Richard Fade, has a wide vision. He said: “Across the board, we think virtualization has the potential to remake the way servers are deployed and managed. We see a whole continuum of products evolving. Our job is to pick the ones that have significant shares.”

Aside from XenSource, Ignition Partners have invested in:

– Skytap, whose technology enables firms to manage virtual machines that can handle data storage, processing, and networking for complex tasks like software development and operations testing.

– InstallFree, which makes business software that solves compatibility and security problems when employees install Windows programs and upgrades on their desktops.

– Xeround, which has developed cloud computing and virtualization software for database applications, mostly in the telecom industry.

Looks like Ignition’s money long-term is on cloud computing and virtualization, and where the money goes, so does development. Promising things to think about in this recession.